Should I combine my pensions?

Imagine you’re a coach guiding your team to victory. Each player has unique strengths, but to win, you need a cohesive strategy. The same principle applies to managing your pensions. In Ireland, understanding and consolidating your pension benefits can be the game-changer you need for a secure financial future.

The pension landscape in Ireland

Ireland offers various pension schemes, including state pensions, occupational pensions, and personal pensions. Each has its own rules, benefits, and management requirements. Navigating these can feel like juggling multiple players without a clear game plan.

Why consolidate your pensions?

1. Simplified management: Just like a coach needs a clear strategy, you need a streamlined approach to manage your pensions. Consolidating your pensions under one policy or scheme simplifies tracking and managing your retirement savings.
2. Cost efficiency: Think of it as reducing the number of training sessions. Multiple pension often mean multiple fees. By consolidating, you may be able to reduce administrative costs, leaving more money in your pocket.
3. Better investment opportunities: A unified pension pot may offer better investment options, much like a well-rounded team that has more strategies to win. Larger funds often have access to a wider range of investment opportunities, potentially leading to better returns.
4. Clearer financial picture: Just as a coach needs to see the whole field, you need a clear view of your financial future. Consolidation provides a comprehensive overview of your retirement savings, making planning and adjusting your strategy easier.
5. Reduced paperwork: Managing multiple pensions can be as chaotic. Consolidation reduces the paperwork, making your pension management as smooth as a well-executed game plan.

How to combine your pensions

1. Seek professional advice from a financial broker: Just as a coach consult with experts, talk to your financial broker. They can help you understand the best consolidation options for your situation.
2. Assess your current pensions: Start by understanding what you have. List all your pension schemes and their benefits, much like evaluating your team’s strengths and weaknesses.
3. Choose the right scheme: Select one that aligns with your retirement goals. Look for one that offers flexibility, low fees, and good investment options.
4. Transfer your pensions: Work with your financial advisor to transfer your pensions into the chosen policy or scheme. Ensure all paperwork is completed correctly to avoid any penalties or issues.
5. Monitor and adjust: Like any good coach, keep an eye on your consolidated pension. Regularly review its performance and adjust as needed to stay on track for your retirement goals.

Your Financial Broker – the best place to get your pension in shape

In a recent Brokers Ireland Survey, those who sought pensions advice tended to have much bigger pension pots compared to those that didn’t¹. So, if you're thinking about your pension, it's definitely worth considering speaking to a Financial Broker to make sure you're on the right track.  They’ll help you create a personalised pension plan to help you build a secure retirement and safeguard your hard-earned money.

1. Source: Brokers Ireland Survey July 2023 ‘The value of advice’. The average pension pot of those who sought pensions advice from a financial broker was €130,525 compared to €84,230 for those who didn’t seek advice. 

This article is not intended to give advice or a personal recommendation. If you'd like a personalised recommendation based on your circumstances, you should speak with a financial broker.  You can find a financial broker on brokersireland.ie.

Remember that tax laws can change over time, so it is important to check revenue.ie for the latest information.